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Sweden is among the leaders in the global bitcoin market

Sweden is among the leaders in the global bitcoin market

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Sweden is the second largest fintech hub in Europe as it has the right mix of venture capital firms, pro startup policies and accelerators.

In brief:

According to a researcher Claire Ingram Bogusz, Sweden is evolving into the next major bitcoin industry and mining market.

Bitcoin presents a fascinating alternative to traditional currency and Sweden is one of the countries that has quickly embraced this new digital currency. Now, the Scandinavian country is marching at the forefront of the cryptocurrency revolution. According to Claire Ingram Bogusz, a researcher at Stockholm School of Economics, Sweden's bitcoin market is growing at a rapid pace, primarily due to friendly regulatory environment for fintech startups and cryptocurrency mining.

"Sweden is among the leaders in the global bitcoin market. There's a very high-level of knowledge about it here, and a high-level of digital competence in the Fintech space. We may not be the size of Hong Kong or London, but it's hard to find that level of digital competence in other financial centers," avers Bogusz.

Sweden is the second largest fintech hub in Europe as it has the right mix of venture capital firms, pro startup policies and accelerators. Bogusz points out that since the beginning of 2016, the investors in the Swedish fintech market have started to move over to the local bitcoin market, which has seen an exponential rise.

With the correct mix of all factors in place, Sweden has become a hotspot for cryptocurrency experimentation and innovation. Given the cold climate of Sweden with an abundance of renewable electric power and vast natural resources, it makes the country a highly-desirable spot for any kind of high-performance computing, including bitcoin mining. As a result, increasing number of bitcoin miners and mining center operators have started to relocate to Sweden.

However, cheap electricity and cold climate of Northeastern China makes it another attractive spot as some of the world's largest mining centers are already based in that region. But due to the increasing hostility of Chinese government towards the crypto market, Chinese miners have started to consider relocating to other regions. In an interview with South China Morning Post, Cui, a founder and executive of a major bitcoin mining pool, who asked to remain anonymous due to the current regulatory stance of the Chinese government, said, "Many of us have already visited Vietnam, Laos, Thailand, Russia and the US, negotiating electricity prices with local authorities and buying sites for future use. The business blueprint is bound to go overseas, even if there's only a 1 percent possibility that China's crackdown against bitcoin would extend to mining."

He further explained that corruption and bribery are a major problem in the Chinese mining space, as electricity providers have a complete control over their decision to limit power supply to certain businesses that fail to comply with their demands. Adding on, he said, "No one brags about it because it's best to make a fortune in silence."

Moreover, in October the Chinese government imposed a ban on cryptocurrency trading in the country which led to the liquidity issue for Chinese miners.

In such situations, Sweden seems much more attractive for miners as it has electricity that is as cheap as China, in addition to the colder climate that is necessary to operate mining pools, as well as friendly regulatory frameworks. Thus, without any restrictions from local authorities, bitcoin miners and mining centers will enjoy more freedom in Sweden. Many natural advantages, as well as the Swedish government's open-mindedness, have resulted in the surge in cryptocurrency activity in the country.

 

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